Barlass is the third vehicle inspector so far to be suspended as part of the wider review by law firm Meredith Connell.
The action against him "comes as urgent work continues on 152 open compliance cases prioritised around risk to safety".
"We have acknowledged that our previous approach has been neither sufficiently robust nor swift enough to ensure the highest levels of regulatory compliance in the past. Now we are putting it right," NZTA's Gammie said.
"New Zealanders can expect full accountability and an increased number of enforcement actions taken to ensure compliance. Today's announcement is in line with that undertaking."
NZTA suspended Barlass on the advice of Meredith Connell because of a series of upheld complaints.
As part of these complaints, Barlass admitted to failing to follow "vehicle standards requirements" when inspecting and certifying cars, not using manufacturers' repair processes and issuing certification to a car that was still damaged.